# EUR-Lex - 52013PC0157 - EN

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# 52013PC0157

**Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework, to take account of the expenditure requirements resulting from the accession of Croatia to the European Union /* COM/2013/0157 final */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

On 9 December 2011, the Treaty concerning
the Accession of the Republic of Croatia to the European Union was signed. It
paves the way for the ratification procedures that should allow Croatia to become the 28th Member State of the European Union on 1 July 2013.

2.           LEGAL ELEMENTS OF THE
PROPOSAL

Article 312(2) of the Treaty on the
Functioning of the European Union provides that the Council shall unanimously
adopt a Regulation laying down the multiannual financial framework after
obtaining the consent of the European Parliament. On 3 March 2010, the
Commission made a proposal for a Council regulation laying down the multiannual
financial framework for the years 2007 to 2013 and for an accompanying Interinstitutional
Agreement[1].
So far, the European Parliament and the Council have failed to agree on these
proposals.

Pending that agreement, the
Interinstitutional Agreement between the European Parliament, the Council and
the Commission on budgetary discipline and sound financial management of 17 May
2006 (IIA)[2]
remains applicable.

The present proposal is thus based on Point
29 of the IIA (adjustment of the financial framework to cater for enlargement).
Point 29 of the IIA provides that, if new Member States accede to the European
Union during the period covered by the financial framework, the European
Parliament and the Council, acting on a proposal from the Commission, will
jointly adjust the financial framework to take account of the expenditure
requirements resulting from the outcome of the accession negotiations.

3.           ADJUSTMENT OF THE
FINANCIAL FRAMEWORK FOR THE PERIOD FROM 1 JULY TO 31 DECEMBER 2013

3.1.        Amounts foreseen for the
accession of Croatia

The proposed
adjustment of the financial framework is based on the relevant articles of the
Treaty concerning the accession of the Republic of Croatia to the European
Union[3]
and on the EU common position on Chapter 33 (Financial and Budgetary
provisions)[4].
The commitment and payment appropriations needed to take account of the
accession of Croatia are shown in the below table:

Croatia financial package (EUCP), accession on 1 July 2013 (EUR millions, current prices) || 2013

||

1. Sustainable growth || 496.8

1a Competitiveness for growth and employment1) || 47.4

1b Cohesion for growth and employment || 449.4

of which Structural Funds || 299.6

of which Cohesion Fund || 149.8

||

2. Preservation and management of natural resources || 20.4

market related expenditure 1) || 9.0

direct payments || 0

demining reserve || 0

rural development || 0

European Fisheries Fund || 8.7

Other CFP support, Life + 1) || 2.7

||

3. Citizenship, freedom, security and justice || 73.3

3a Freedom, security and justice1) || 2.1

Schengen facility || 40.0

3b Citizenship1) || 2.2

Transition Facility || 29.0

||

4. EU as a global player || 0

||

5. Administration || 22.0

||

6. Compensations (Cash-flow facility) || 75.0

||

Total commitment appropriations || 687.5

Total payments appropriations || 396.3

1) Non pre-allocated expenditure given for illustrative purposes only.

3.2.        Adjustment of the
financial framework for enlargement – appropriations for commitments

In accordance with
Point 29 of the IIA, the Commission proposes to adjust the financial framework
for the year 2013 by fully taking account of the expenditure requirements for
EU policies which result from the accession negotiations as detailed in the above
table. Given that the financial framework is expressed in million euros,
figures are rounded as appropriate for the purpose of its adjustment.

As part of its
ongoing commitment to limit the costs of administering EU policies, the
Commission proposes not to increase the ceiling for commitment appropriations
for heading 5. The proposal is therefore to increase the 2013 ceiling for
commitment appropriations by EUR 666 million in current prices with a breakdown
as indicated in the table hereafter under point 3.4.

3.3.        Adjustment of the financial
framework for enlargement – appropriations for payments

The Commission
proposes to increase the 2013 ceiling for payment appropriations by EUR 374
million in current prices to cover the expenditure requirements of the EU
policies resulting from the accession negotiations as detailed in the above table.

As part of its
ongoing commitment to limit the costs of administering EU policies, the
Commission proposes not to take the additional payment appropriations relating
to heading 5 into account.

3.4.        Financial Framework
adjusted to enlargement in current and 2004 prices

The above changes to the financial framework
2007-2013 are summarised in the below table (current prices):

The financial framework adjusted to enlargement (EU-28) expressed in
current prices is shown below. It is based on the results of the technical
adjustment for 2013 (Point 16 of the IIA).

The formal decision amending the IIA as regards
the financial framework must refer to the basic table agreed in the IIA which
is expressed in constant 2004 prices. For this purpose, the amounts of the
financial framework adjusted to enlargement (EU-28) expressed in current prices
have to be converted into 2004 prices by means of a fixed deflator of 2% a
year, in accordance with Point 16 of the IIA. The resulting financial framework
table expressed in 2004 prices is annexed to the proposed Decision of the
European Parliament and of the Council.

FINANCIAL
FRAMEWORK 2007-2013 ADJUSTED FOR ENLARGEMENT (EU-28), IN CURRENT PRICES

4.           FINAL REMARKS

For Croatia's accession to the European Union to take effect on 1 July 2013, each signatory State’s
instruments of ratification must be deposited with the Government of the Italian Republic on 30 June 2013 at the latest, in compliance with Article 3 of the Accession
Treaty.

Should any signatory
to the Accession Treaty, according to its own ratification procedure, reject
the Accession Treaty or not ratify it within the prescribed period, the Accession
Treaty will not enter into force on 1 July 2013.

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

amending the Interinstitutional Agreement
of 17 May 2006 on budgetary discipline and sound financial management as
regards the multiannual financial framework, to take account of the expenditure
requirements resulting from the accession of Croatia to the European Union

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the
Interinstitutional Agreement between the European Parliament, the Council and
the Commission of 17 May 2006 on budgetary discipline and sound financial
management[5],
and in particular to Point 29 thereof,

Having regard to the proposal from the European
Commission,

Whereas:

(1)       The Treaty concerning the
accession of the Republic of Croatia to the European Union[6] lays down transitory provisions
in budgetary matters.

(2)       The Accession Conference
of 30 June 2011 has endorsed the results of the negotiations which have
determined expenditure requirements resulting from the accession of Croatia to the European Union on 1 July 2013.

(3)       The accession of Croatia
requires an adjustment of the multiannual financial framework 2007-2013, so as
to raise the ceilings for commitment appropriations for the year 2013 by EUR 47
million for subheading 1a, by EUR 450 million for subheading 1b, by EUR 21
million for heading 2, by EUR 42 million for subheading 3a, and by EUR 31
million for subheading 3b, and to provide for compensations amounting to EUR 75
million under Heading 6, in current prices.

(4)       The accession of Croatia also requires and adjustment of the ceiling for payment appropriations for 2013, to
be raised by an amount of EUR 374 million in current prices.

(5)       The financial framework
for the European Union agreed upon in the Interinstitutional Agreement on
budgetary discipline and sound financial management should be adjusted to take
account of the accession of Croatia for the period from 1 July to 31 December
2013.

(6)       Annex I of the
Interinstitutional Agreement on budgetary discipline and sound financial
management should therefore be amended accordingly[7],

HAVE ADOPTED THIS DECISION:

Sole Article

Subject to the
entry into force of the Treaty concerning the accession of the Republic of Croatia to the European Union on 1 July 2013, Annex I to the
Interinstitutional Agreement on budgetary discipline and sound financial
management is replaced by the Annex to this Decision.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX

[1]               COM(2010) 72 and COM(2010) 73 of 3.3.2010.

[2]               OJ C 139, 14.6.2006, p. 1.

[3]               Part Four, Title III, notably Articles 29 to 34.

[4]               Conference on Accession to the European Union – Croatia, Accession Document No 30/11 (CONF-HR 17/11) of 29.6.2011.

[5]               OJ C 139, 14.6.2006, p. 1.

[6]               OJ xxx

[7]               For that purpose, the figures resulting from the above
agreement are converted into 2004 prices.